F&O Ban: Indiabulls Housing, Delta Corp under ban on Wednesday

Two stocks are under a ban for trade on Wednesday, May 23, viz. Indiabulls Housing Finance Company and Delta Corp. The banned stocks will be available for trading in the cash market.

The Future & Options contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%.

Traders who trade in indices do not encounter a situation of security ban.

The MWPL for Indiabulls Housing stood at 88.4% on Tuesday with OI reported by Trendlyne at 18.2 million. It was down 12.1% from the previous session.

IB Housing Finance shares settled at Rs 111.45 on the NSE on Tuesday, down Rs 2.15 or 1.89%.

According to data available on Trendlyne, the MWPL for Delta Corp stood at 104.2% on Tuesday with OI reported by Trendlyne at 5.5 million. It was down 66.5% from the previous session.

Delta Corp shares closed the session Rs 12.30 or 5.54% higher at Rs 234.50.

Indian markets ended Tuesday with minor gains, giving a positive closing for three consecutive sessions. While the S&P BSE Sensex ended at 61,981.79, up 18.11 points or 0.03%, the broader Nifty50 settled at 18,348, higher by 33.60 points or 0.18%. In the 50-stock Nifty, 27 advanced while 23 declined. Banking gauge Nifty Bank was up by 69.35 points or 0.16% and closed at 43,954.45.

Nifty is forming a doji candle, which signals indecision, Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said. Call writers were seen exiting from the 18,300, 18,200 and 18,100 strikes while put writers aggressively built positions at 18,400 and 18,500 strikes, indicating support getting stronger at lower levels, he said.

"The Relative Strength Index (RSI), which is a momentum indicator, is forming lower highs on the daily chart and hence traders are advised to exercise caution. Nifty was on course to close above the 18,350 level, which was acting as a stiff resistance for the benchmark index for the last two weeks. The next support for the Nifty is placed around 18,200 levels. Nifty is unlikely to gain momentum until it manages to give a strong close above 18,400," Ramani said.

Meanwhile, Bank Nifty failed to surpass the crucial hurdle of 44,000 on closing basis, which is also the level where the maximum call and put open interest (OI) for the index is placed, the Samco Securities expert said. The lower-end support remains at the 43,500 level while 44,000 will continue to act as resistance for Bank Nifty, he said further.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)